“The State ended last fiscal year with a cash deficit of $8.2 billion. The combined current year cash deficit stands at $20.3 billion. Those deficits are being covered with $14.9 billion of internal borrowing (temporary loans from special funds) and $5.4 billion of external borrowing.
Well, what do they expect from a state that punishes businesses and productive workers with high taxes and multitudinous regulations? Successful states, such as Texas and its zero income tax, pamper businesses because that’s where the jobs come from. If businesses leave, then the tax base erodes.”
You can believe that tourism in San Fran, Oakland and the Bay Area will tank–as long as politicians and cops protect gangsters running rampant on the streets of Northern California’s Havana bastion.
Chiang: State Revenues Crashing
John Seiler, Cal Watchdog, 11/11/11
As we have predicted many times here on CalWatchDog.com, the state still is taking in too little revenue for what it spends. The latest monthly report from Controller John Chiang:
SACRAMENTO – State Controller John Chiang today released his monthly report covering California’s cash balance, receipts and disbursements in October, showing revenues came in $810.5 million below projections from the recently passed state budget.
“October’s poor revenues capped a very disappointing first four months of the fiscal year,” said Chiang. “Unless revenues and expenditures begin to track with projections, the State will face increasing cash pressure in the months ahead.”
The Controller’s Office continues to work with the Department of Finance to identify and prepare for any impact on the State’s cash outlook. After accounting for October revenues, total year-to-date general fund revenues are now behind the budget’s estimates by $1.5 billion, but expenditures for the year are over projections by $1.7 billion.
The State ended last fiscal year with a cash deficit of $8.2 billion. The combined current year cash deficit stands at $20.3 billion. Those deficits are being covered with $14.9 billion of internal borrowing (temporary loans from special funds) and $5.4 billion of external borrowing.
Well, what do they expect from a state that punishes businesses and productive workers with high taxes and multitudinous regulations? Successful states, such as Texas and its zero income tax, pamper businesses because that’s where the jobs come from. If businesses leave, then the tax base erodes.
It’s like a sheep herder. A smart one keeps his sheep happy so he can sheer them and make money from the wool. A dumb sheep herder kills his sheep and eats them.
In California, the state government — which is run by the government-worker unions — first starves the sheep, then kills the sheep to eat them. Then it complains there’s not enough wool to go around. And it plots to kill the sheep sooner.
The problem is that the wealth makers are fleeing the State in droves and the wealth takers (i.e., the governor and legislature, the public unions, illegal immigrants, and those living on the public dole) are growing in number, power and corruption. They are bankrupting this State just as the Obama administration and the Democrats are bankrupting this nation.
November 12, 2011 at 9:38 pm
Progressives have been bleeding this state dry for the last 20 yrs. When will we stop rewarding them with re-election????
November 12, 2011 at 8:27 pm